Question

For the basic accounting equation to stay in balance, each transaction recorded must:

Select one:

a. affect only one account.

b. always affect exactly two accounts.

c. affect two or more accounts.

d. change no more than one account.

Answer 1

Solution

Option c. affect two or more accounts.

Incorrect options are

Option a. affect only one account.

In option a, debit and credit will not match if we only affect 1 account

Option b. always affect exactly two accounts.

In option b, if a transaction has more than 3 accounts affected, then also debit and credit wont match

Option d. change no more than one account.

In option a, debit and credit will not match if we only affect 1 account